The subsidiary will invest Rs 50 crore in the new plant, which will have an annual production capacity of 1,000 buses on a double-shift basis, said Mr Jan Vandooren, Vice-President of Volvo Bus South Asia.

The plant will build complete buses for the local as well as the export markets. Currently, exports contribute 10% of total sales. The company has been exporting to Sri Lanka and Bangladesh, and intends to export to neighbouring countries in West Asia and Africa.